Passion and enjoyment are often at the forefront of the yacht-ownership experience. However, it only takes one hurricane or one accident involving a watertoy or a crewmember to change everything. These sobering words highlight why proper yacht insurance coverage and risk management strategies are essential for superyacht owners. From named storms to towing a tender, and especially to the welfare of crew, risks vary from owner to owner. To help navigate these risks, we spoke with Rob Carron, the U.S. practice leader at Aon Private Risk Management. With 20 years’ experience in managing insurance and risks for yachts, Carron knows which insurers can provide the right custom coverage for clients.
Hurricane season presents particular challenges for yacht owners, especially those planning yard periods in regions like South Florida. In fact, it’s common to arrange service or refit work during this season, from June 1 to December 1. As Caron explains, yard period planning often occurs without adequately considering hurricane risks, therefore potentially creating insurance complications. For example, some insurance underwriters impose substantial additional premiums, double hurricane deductibles, or fully exclude hurricane damage coverage if a yacht is out of commission. The key takeaway is clear: Well before scheduling significant maintenance or refit in hurricane-prone regions, consult your yacht insurance broker.
Another growing concern in yachting involves lithium-ion battery fires, often from improperly charged watertoys or batteries. In response, insurers are requiring specific procedures. Owners can can address these risks proactively, according to Carron, through a risk-assessment survey. Briefly, an independent marine surveyor will evaluate all aspects of your yacht’s operations, including how you and your crew store, charge, and use lithium-ion batteries. Additionally, certain flag states now require standard operating procedures for personal lithium-ion devices, directly impacting you and your guests.
Yet another significant yacht insurance concern involved towing tenders. Did you know, for instance, that most policies exclude covering them unless your insurer has reviewed and approved a specific tow plan? Even then, further conditions, deductibles, and premiums usually apply. Carron recommends developing a comprehensive towing plan in alignment with your insurance company’s requirements. These could include installing tracking devices or restricting nighttime towing. Regardless, know the rules before you purchase a tender you intend to tow.
Perhaps most importantly, Carron emphasizes the critical nature of crew employment agreements. Seafarer-employment agreements need to be effective on day one of work, since accidents know no time boundaries. They should outline your obligations clearly if crewmembers become injured or sick, including provisions for medical insurance, wage replacement due to injury or illness, and accidental death and disability.
Finally, and on a positive note, insurers are increasingly encouraging owners to implement crew-wellness programs. Carron knows a few insurers that partner with organizations like Superyacht Fitness, in fact, to offer programs promoting physical fitness, team building, and overall wellbeing. These initiatives not only boost morale but also help minimize accident risks. When crew are healthier and more engaged, they perform better and contribute to a safer operating environment.
Ultimately, Carron says, the ownership experience from where he sits comes down to ease of doing business. By addressing potential risks proactively—whether related to weather, equipment, or personnel—you can enjoy peace of mind. Investing in proper insurance coverage and risk management strategies pays dividends in both protection and tranquility, allowing you to focus on what matters most: enjoying your passion for yachting.
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Aon Private Risk Management aonprivateriskmanagement.com